Evaluation of Competitive Tenders in China: Theory and Practice

October 31, 2001 | BY

clpstaff &clp articles

For those who have advised on competitive tenders for significant infrastructure projects in China, it is a common observation that the theory of purely objective application of tender criteria and the practice during bid selection often have intriguing differences. Recent regulation of competitive tenders in China is therefore a welcome and constructive development.

By Stephen Harder and Charles Wang, Clifford Chance, Shanghai and Hong Kong

The promulgation by the State Development Planning Commission (SDPC), State Economic and Trade Commission, Ministry of Communications, Ministry of Construction, Ministry of Information Industry, Ministry of Railways and Ministry of Water Resources of the Bid Evaluation Committees and Methods Tentative Provisions (the Tentative Provisions), effective July 5 2001, provides bidders with a road map and procedural rights during the often tortuous bidding process.

The Interim Regulations are founded on the PRC, Invitation and Submission of Bids Law (the Bid Law) promulgated August 30 1999 and effective January 1 2000. The Tentative Provisions join other SDPC regulations of the tender process anticipated by the Bid Law such as Standards for the Scope and Size of Construction Projects Requiring Invitation for Bids, effective May 1 2000, Self-conducted Invitation for Bids for Construction Projects Tentative Procedures and Publication of Notices of Invitation for Bids Tentative Procedures, both effective July 1 2000.

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